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Buying Leads vs. Generating Leads

The question of buying leads vs. generating leads reminds me of the proverb that says that if you buy a man a fish you feed him for a day but if you teach a man to fish you feed him for a lifetime.
When you are buying leads from leads brokers, list brokers and online marketers, you are forever at their mercy. The day you stop buying leads is the day your business stops getting new customers. Not only that, but it is very difficult to make the numbers work in terms of profit when you are buying leads. The reason for this is that when you buy leads, those leads have typically been sold to dozens if not hundreds of businesses just like yours so they are difficult to close. In order to get sales, you have to buy an enormous amount of leads, which the leads brokers love. Closing enough of these sales leads to make a profit takes a tremendous effort, if it is even possible.
Remember, lead brokers don’t care about your business- they care about their own business. The way for them to make the most money is to sell the same set of leads to as many people as possible. Once they own a lead, there is literally no additional expense in delivering that lead to hundreds, if not thousands, of buyers. If you are the buyer of these online leads, you end up having to contact people who have already been contacted by tons of other businesses just like yours. The odds of you closing them, rather than one of the other hundred or so other businesses that contact them, are long to say the least.
Rather than buying leads, you should learn to generate your own leads.
There are two big advantages to this. First, in the long run it is a lot less expensive (if you know what you’re doing) to generate your own leads than it is to keep buying leads. Next, you will no longer be beholden to the lead brokers who are constantly diluting the value of their leads by selling and reselling the same leads.
In order to start generating your own sales leads, you first need to have a web page, called a landing page, which is set up for the express purpose of capturing your visitors contact information. It is this contact information, when it comes from a qualified prospect, which makes a sales lead. This contact page should be professionally designed and tested to give you the highest possible conversion rate. The conversion rate is the amount of visitors who fill out the form (or call) divided by the amount of people who visit the page. The higher the conversion rate, the more sales you get and the less expensive your leads are.
Next, you need a system in place to get visitors (or “traffic”) to your page. You do this by taking advantage of the search engines’ (Google, Yahoo, etc.) pay per click services. The beauty of a pay per click campaign is that you are only paying for those visitors who have identified themselves as prospects because they typed in certain keywords in their search and then they actually clicked on your ad. If they do not click, you do not have to pay, even though they may have read your ad. The better ad you write, the more people who will click on it and the lower your cost of each click will be.
In order to be generating leads at the best possible price, you should have both a high quality pay per click campaign and a high converting landing page. Set these two things up correctly and you will never again end up buying leads.




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